Sun Hydraulics (Nasdaq: SNHY) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Sun Hydraulics met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
Sun Hydraulics recorded revenue of $48.8 million. The three analysts polled by S&P Capital IQ expected a top line of $48.7 million on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $53.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The three earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS of $0.34 for Q3 were 23% lower than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.7%, 60 basis points better than the prior-year quarter. Operating margin was 27.0%, 220 basis points worse than the prior-year quarter. Net margin was 18.1%, 340 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.4 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $206.4 million. The average EPS estimate is $1.53.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,310 members out of 1,327 rating the stock outperform, and 17 members rating it underperform. Among 372 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 370 give Sun Hydraulics a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sun Hydraulics is hold, with an average price target of $28.50.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.